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On June 6, Susan Day exercised her option to purchase 20,000 shares of ACCA Co $1 par value common stock at an option price o
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6 June Cash a/c [20,000 *$8] ...Dr.  $1,60,000

    To Common Stock a/c [20,000 * $1] $20,000

To Additional Paid-in Capital a/c $1,40,000
   ( Issued under employee stock option plan 20,000 shares at the par value of $1 )

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